{"id":35618,"date":"2023-02-01T11:56:12","date_gmt":"2023-02-01T08:56:12","guid":{"rendered":"https:\/\/astrobaltics.eu\/?p=35618"},"modified":"2023-02-09T11:15:24","modified_gmt":"2023-02-09T08:15:24","slug":"frictionless-shopping-answer-to-cost-reduction-seasonality","status":"publish","type":"post","link":"https:\/\/astrobaltics.eu\/en\/frictionless-shopping-answer-to-cost-reduction-seasonality\/","title":{"rendered":"Hybrid Frictionless Shopping: The answer to seasonality and cost reduction?"},"content":{"rendered":"\n
\n
\"Hybrid<\/figure>\n\n\n\n

Hybrid Frictionless Shopping: The answer to seasonality and cost reduction?<\/h2>\n\n\n
Posted: 2023-02-01 11:56:12<\/div>\n\n\n\n

Back in 2008, conversations were had about the sudden collapsing fuel price and the number of fuel stations which were suddenly barely profitable. <\/p>\n\n\n\n

<\/p>\n\n\n\n

Retailers wanted to understand whether or not to close stations or find a way to reduce the cost of the stations, riding out the storm. Whilst some retailers chose to sell off assets, many switched to a different model: unmanned.<\/p>\n\n\n\n\n\n\n\n

<\/p>\n\n\n\n

Unmanned stations offered the chance to reduce the cost of operating a station without giving up on the overall cost invested, or the community at large.<\/p>\n\n\n\n

<\/p>\n\n\n\n

The unmanned stations became so successful that they spawned a revolution in how retailers reached customers.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Belgium, along with other countries, had a further exciting proposition. <\/p>\n\n\n\n

<\/p>\n\n\n\n

What if our 6-10 pm stores could sell fuel all night?<\/strong><\/p>\n\n\n\n

<\/p>\n\n\n\n

Suddenly, the manned station became a hybrid station, with a store during the day and an unmanned one at night.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Scandinavia went one step further by manning some of their stations in the summer, and making them unmanned during the winter. Simple.<\/p>\n\n\n\n

All of this led to a problem<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Fuel volumes are on the decline, whether due to EVs or simply more economical cars, they are on the decline.<\/p>\n\n\n\n

<\/p>\n\n\n\n

To counter that, retailers are becoming increasingly reliant on their convenience stores.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Now, back in 2010, the big thing was CODO, company-owned, dealer-operated.<\/p>\n\n\n\n

<\/p>\n\n\n\n

This was an excellent solution for fuel retailers to sell fuel and care less about the convenience store, that was handled by the dealer.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Fuel retailers woke up to the fact that they were more reliant on the convenience store than they first thought<\/h3>\n\n\n\n

<\/p>\n\n\n\n

When the fuel retailers woke up to the fact that they were more reliant on the convenience store than first thought, they moved to a new model, COCA, company owned, company agency; essentially, the fuel retailer owns the forecourt, and the store, and all the stock in it, but the dealer supplies the staff and claims commission on sales.<\/p>\n\n\n\n

<\/p>\n\n\n\n

2023 is here, and retailers are faced with a whole new set of problems.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Unmanned sites are no longer as profitable as they should be, and fully manned sites have cashflow issues in some locations because they are not beneficial for the entire twenty-four hours.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Grocery chains will begin to see the same thing during the recession, but they are entering the frictionless checkout experience.<\/p>\n\n\n\n

<\/p>\n\n\n\n

One of the most frustrating things you see during a recession is panic redundancy.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Companies fear what is coming, and even though they could easily ride out the storm, they make mass lay-offs.<\/p>\n\n\n\n

Lay-offs mean people tie the purse strings; ergo, people spend less, prolonging the recession. Let\u2019s be honest; recessions are man-made. So what should retailers do during this period?<\/p>\n\n\n\n

<\/p>\n\n\n\n

\n